SSI Earning Limits

Question: How Much Can You Earn On SSI?

Supplemental Security Income (SSI) is a Federal income program designed to help aged, blind, and disabled people who have little or no income. It provides cash to meet basic needs for food, clothing, and shelter. Understanding how much you can earn while receiving SSI is important, as it can affect your benefit amounts. This guide will explain the eligibility criteria, the income limits, and the impact of earnings on your benefits.

Understanding SSI Income Limits

SSI is a need-based program, meaning that your income and resources are considered when determining your eligibility for benefits. The Social Security Administration (SSA) reviews various types of income, including earned and unearned income, when evaluating SSI eligibility.

Types of Income Considered

1. Earned Income: This includes wages from a job, self-employment earnings, and other remuneration for work conducted.

2. Unearned Income: This encompasses other sources of income such as Social Security benefits, pensions, state disability payments, unemployment benefits, and real estate income.

3. In-Kind Income: This refers to food or shelter that you get for free or at less than its fair market value.

4. Deemed Income: This pertains to part of the income of a spouse, parent, or sponsor that is considered available to you.

Basic Income Limits for SSI

The federal benefit rate (FBR) is a monthly maximum for SSI and is subject to change annually based on the cost-of-living adjustment. For 2023, the FBR is $914 for individuals and $1,371 for couples.

However, not all income counts towards this limit. The SSA has specific rules regarding exclusions that might allow you to earn more without affecting your SSI benefits.

Income Exclusion Guidelines

1. General Income Exclusion: The first $20 of most income received in a month is excluded.

2. Earned Income Exclusion: The first $65 of earned income plus one-half of the remaining income is excluded each month.

Example Calculation

Let's consider an example to illustrate how these exclusions work:

• Monthly Earned Income: $1,000
• Unearned Income: $100

Exclusions:

• $20 General Income Exclusion from the Unearned Income
• Remaining Unearned Income: $80
• $65 Earned Income Exclusion
• Remaining Earned Income: $1,000 - $65 = $935
• 50% of Remaining Earned Income: $935 / 2 = $467.50

Countable Income:

• Unearned Income: $80
• Earned Income: $467.50
• Total Countable Income: $80 + $467.50 = $547.50

The individual's SSI benefit would be reduced by the total countable income. Assuming a base SSI benefit of $914, the new benefit would be $914 - $547.50 = $366.50.

Impact of Earnings on SSI Benefits

Achieving a balance between working and maintaining benefits is crucial. As shown in the example, although working affects SSI payment amounts, the overall income (earned income + SSI benefits) tends to be higher than SSI benefits alone.

Limits for Blind Work

For blind individuals, specific work exclusion rules apply. They may exclude any income used for expenses related to earning that income. This is called Blind Work Expenses (BWE).

Special Considerations

Student Earned Income Exclusion

There is a provision for students receiving SSI to have some of their monthly income excluded from calculations:

• Monthly Exclusion Limit for Students (2023): $2,220
• Annual Maximum Exclusion: $8,950

Plan to Achieve Self-Support (PASS)

The PASS initiative allows you to set aside money and resources to reach a work goal. Money set aside under a PASS is not counted toward the SSI income or resource limit.

Impairment-Related Work Expenses (IRWE)

For individuals with disabilities, the cost of impairment-related work may be excluded when determining eligibility and payment amounts for SSI.

Key Points to Consider

• Medicaid Eligibility: Working may impact other benefits like Medicaid. However, most people can continue to maintain Medicaid eligibility even when working under certain income limits through the 1619(b) provisions.

• Reporting Changes: Always report changes in income to the SSA immediately. Failure to report changes can result in overpayment, which you will be required to repay.

Common Questions and Misconceptions

Q: Can I have a part-time job while receiving SSI?

A: Yes, you can. However, earnings may affect the SSI monthly payment, depending on the exclusions and any personal scenario adjustments.

Q: Will earning more disqualify me from SSI benefits completely?

A: It might reduce the SSI benefit amount you receive, but you could still qualify depending on the calculation rules. It's always beneficial to consult with SSA directly to understand how specific income could impact benefits.

Exploring Further

Discover more about SSI regulations and employment incentives directly from the SSA's "Red Book," a comprehensive guide on employment-related provisions.

Final Thoughts on Earning with SSI

Understanding SSI's earning limits and rules can be complex, but it's essential for making informed decisions regarding work and benefits. By following these guidelines and exclusions, you can navigate the fine line between maximizing your earning potential and maintaining your SSI benefits.

For more detailed guidance, visit the Social Security Administration's official site or speak with an SSA representative. Seek professional advice for individual circumstances to ensure the best financial outcome while receiving SSI benefits.